Predatory Loans:

The Gateway to the Debt Cycle Trap

When financial challenges arise, emotions can run high, often leading to rushed financial decisions that may make your financial situation worse in the long term. Predatory lenders earn their name for a reason—they target individuals in tight spots, counting on their desperation and perceived lack of alternatives to address immediate financial needs. Common examples of predatory lending include:

• Payday Loans: Short-term loans designed to be repaid on your next payday, often with interest rates exceeding 300% APR.
• Vehicle Title Loans: Loans that use your car as collateral, risking repossession if payments aren’t met. These types of loans typically charge interest ranging from 200% to 300%. For example, borrowing $1,000 for 30 days with a 25% finance fee equates to an APR of approximately 300%. At the end of the 30-day period, you would owe $1,250, which includes the original loan amount plus $250 in interest.
• Online Credit App Loans: Apps that provide quick loans with seemingly low barriers but charge steep fees and interest rates. 

The Debt Cycle Trap

The biggest danger of predatory loans is the debt cycle. Borrowers often find themselves unable to repay the initial loan and must take out another loan to cover it. This creates a spiral of borrowing, where fees and interest accumulate faster than they can be repaid.

For example, with payday loans, borrowers might pay only the interest due and “roll over” the loan repeatedly, paying far more than they originally borrowed. Vehicle title loans can result in losing your car, a critical asset for maintaining employment and stability.

Recognizing Red Flags

• Sky-High Interest Rates: Annual Percentage Rates (APRs) over 36%.
• Lack of Transparency: Hidden fees or unclear terms in the fine print.
• Aggressive Sales Tactics: Pressure to take the loan without exploring other options.
• Balloon Payments: Loans structured so you owe a large sum at the end of the term.

Alternatives to Predatory Loans

If you’re in need of financial assistance, consider these safer options:

• Credit Union Loans: Many offer small, low-interest loans for emergencies.
• Community Resource Assistance Programs: Nonprofits and community organizations often provide help with rent, utilities, and food.
• Salary Advance Programs: Some employers offer paycheck advances without exorbitant fees.
• Asset Building Programs: Individual Development Accounts (IDAs) or financial coaching services can help you build savings and access to better credit options.
• Financial Counseling: Improving your budgeting, financial skills and budgeting are key to long-term financial success.

What Can You Do Instead?

In tough financial situations, slow down and consider all options, including the impact of unpaid bills. Ask yourself: Have I explored every resource or reached out for help? A solution may exist that you haven’t considered. You're not alone—many have faced similar challenges. Seek support before making a decision you might regret.

If you're caught in predatory loans, there’s hope. Work with your PATHWorks coach or a trusted financial counselor. Many nonprofits offer debt management plans to help you regain control.

Financial emergencies are tough, but predatory loans often make things worse. Avoid them and seek safer alternatives to protect your finances and peace of mind.

Maximizing Your Paycheck: Adjusting Tax Withholdings

Are you waiting until tax season for a big refund? While it may feel like a bonus, that refund is actually money you earned but let the IRS hold onto all year – interest-free! By adjusting your tax withholdings, you can boost your monthly take-home pay and put that money to work for you NOW.

When you receive a large tax refund, it means too much is being withheld from your paycheck. By filing a new W-4 form with your employer, you can update your allowances or withholdings to reflect your actual tax liability. This means more money in your pocket each payday rather than waiting until tax time for a lump sum.

When you feel like you're living paycheck-to-paycheck or just not bringing home enough money each month, this extra income can make a big difference. You could:

• Cover Basic Needs: Have more funds for rent, groceries, or utilities.
• Avoid Late Fees: Pay bills on time and avoid extra charges.
• Start Small Savings: Even a little saved each month can add up for emergencies.
• Pay Down Debt: Tackling high-interest debt sooner saves you money in the long run.
• Invest in Your Goals: Use the additional income to work toward education, homeownership, or career advancement.

It’s important to find the right balance. Adjusting too much could result in owing taxes when you file. Use the free online IRS Tax Withholding Estimator to see what works best for your situation.

By keeping more of your paycheck each month, you can take control of your finances and create more breathing room in your budget. Small changes like this can make managing your bills and building stability a little easier.

Redmond Main Office

405 SW 6th Street

Redmond, OR 97756

Phone) 541-923-1018

Fax) 541-923-6441

Text) 541-286-5562

Business Hours:

Monday to Thursday, 8:00 am - 5:00 pm

Closed Friday

Bend Satellite Office

2017 NE Full Moon Dr. Suite #100

Bend, OR 97701

Phone) 458-281-0813

Fax) 458-281-0815

Text) 541-286-5562

Business Hours:

Tuesday to Thursday, 9:00 am - 4:00 pm

Closed Monday & Friday

Available this Summer:

59-Unit Affordable Housing Community in NW Bend

A new affordable housing community is set to open this summer in Northwest Bend, offering 59 units of workforce housing aimed at helping individuals and families find affordable living options in the west side of town. Located on a 3.71-acre site across from the Oregon State University Cascades campus, the College View development promises easy access to transportation, employment, services, and education. The development also benefits from a neighbor project being developed by Rooted Homes, which will add approximately 40 affordable homeownership opportunities next door, providing more options for community members.

College View will feature 2 three-story buildings, and a range of amenities designed to enhance residents' quality of life. The mix of unit types will support various household compositions and foster multi-generational interactions. To qualify, applicants' income must be below 60% of the area median income (AMI), with six units specifically set aside for those with incomes at or below 30% of AMI, made possible by project-based vouchers.

The College View development is a result of a successful collaboration between public and private sectors. The land was purchased from Deschutes County at a below-market price with the stipulation that it be used for affordable housing. Funding for the project came from several partners, including Oregon Housing and Community Services, Washington Federal Bank, and PNC Bank. The development was designed by Pinnacle Architecture and constructed by the local general contractor CS Construction.

Applications for the homes will be accepted roughly two months before the development’s completion (anticipated in August 2025). Interested individuals are encouraged to visit housing-works.org for updated information on eligibility and application procedures. As the project nears completion, more details will be available to help guide prospective residents through the application process.

2025 Housing Choice Voucher

Waiting List Results

Housing Works received a total of 3,383 online applications for the Housing Choice Voucher (HCV) program Waiting List from January 13–17, 2025. Out of those applications, 2,248 were received from local residents living in Crook, Deschutes and Jefferson Counties.

Current Applicants

• Click HERE to check your position on the waiting list.
• If your address, phone number, income and/or household composition changes, please update your information by clicking HERE.
• If you are selected off the waiting list for the HCV program, Housing Works will contact you directly.

Technical Assistance

• The email address used at registration is your login. You must have a valid email address in order to access your application.
•  If you forgot your password, please select the “Forgot Password” option and follow the instructions.
•  Keep your login and password somewhere safe and secure.
• If you need additional assistance, call Housing Works at 541-923-1018.

The 2025 HCV Waiting List will remain active until December 31, 2025. At that time, all remaining 2025 applications will be removed from the waiting list. If your application was not selected, you may reapply next year.

The 2026 HCV Waiting List will be open from:

January 12th-16th, 2026. 

We would like to thank all our community partners for making the 2025 Waiting List opening week a success. Without all your hard work, we would not be able to serve our communities. Thank you!